Key benchmark indices pared gains in early afternoon trade as Asian stocks dropped. The S&P BSE Sensex was up 38.79 points or 0.19%, off 71.69 points from the day's high and up 16.68 points from the day's low. The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade.
Bajaj Auto edged higher in volatile trade after declaring Q1 result. Capital goods pivotals edged lower. Power equipment major Bhel extended intraday slump. IT major TCS hit record high after reporting good Q1 results after trading hours on Thursday, 18 July 2013. State-run UCO Bank extended post result slide as sticky loans rose in Q1 June 2013. ICICI Bank extended intraday fall. Jindal Steel & Power extended intraday fall. Mindtree hit 52-week high after announcing strong Q1 result after market hours on Thursday, 18 July 2013.
Key benchmark indices pared initial gains triggered by good Q1 result from IT major TCS. Key benchmark indices extended gains in morning trade. The Sensex hit over 7-week high. The CNX Nifty hit 7-week high. Key benchmark indices held positive zone in mid-morning trade. Key benchmark indices pared gains in early afternoon trade as Asian stocks dropped.
Foreign institutional investors (FIIs) sold shares worth a net Rs 178.30 crore on Thursday, 18 July 2013, as per provisional data from the stock exchanges.
At 12:18 IST, the S&P BSE Sensex was up 38.79 points or 0.19% to 20,167.20. The index jumped 110.48 points at the day's high of 20,238.89 in morning trade, its highest level since 30 May 2013. The index rose 22.11 points at the day's low of 20,150.52 in early trade.
The CNX Nifty was up 2.30 points or 0.04% to 6,040.35. The index hit a high of 6,066.85 in intraday trade, its highest level since 31 May 2013. The index hit a low of 6,033.40 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. On BSE, 998 shares declined and 882 shares gained. A total of 124 shares were unchanged.
The total turnover on BSE amounted to Rs 813 crore by 12:20 IST compared to Rs 586 crore by 11:20 IST.
Among the 30-share Sensex pack, 17 stocks declined and rest of them gained. Hero MotoCorp (up 2.83%), Infosys (up 1.95%) and Coal India (up 1.8%) edged higher from the Sensex pack.
Bajaj Auto surged 3.68% to Rs 1,967 in volatile trade. The stock hit a high of Rs 1,970 and low of Rs 1,860.10 so far during the day. The company's net profit rose 3% to Rs 738 crore on 1% growth in total income to Rs 5087 crore in Q1 June 2013 over Q1 June 2012. The result was announced during trading hours today, 19 July 2013.
Bajaj Auto said its EBITDA margin surged to 21.3% in Q1 June 2013 from 18.9% in Q1 June 2012. The company said its strategy to focus on international markets has paid rich dividends. The company said its strategy to hedge future earnings from exports has ensured the company's ability to leverage to its advantage the depreciation of the rupee against the dollar. While exports were almost flat at $327 million, in rupee terms, exports recorded a growth of 10% to Rs 1876 crore in Q1 June 2013 over Q1 June 2012. The company said that taking into account the current trend of the rupee against dollar and current position of hedged contracts, a further benefit on account of depreciating rupee would accrue to the company in the coming quarters.
Bajaj Auto said that the outlook on sales of three wheeler passenger vehicles in India remains positive with the release of new permits in Hyderabad and Maharashtra and given the company's strong footing in the diesel segment.
Capital goods pivotals edged lower. Power equipment major Bhel tumbled 6.91% to Rs 175.85, with the stock extending intraday fall. It was the top loser from the Sensex pack.
L&T slipped 1.2%. The company on Wednesday, 17 July 2013, said its transportation infrastructure business made a major breakthrough in its international business by securing a new order worth Rs 2085 crore from the Ministry of Transport and Communications, Sultanate of Oman, for the construction of the Al Batinah Expressway Package 4. The project is scheduled to be completed in 36 months. This order was won against stiff international competition and augurs well for L&T's expansion in international infrastructure, the company said.
Jindal Steel & Power lost 3.49%, with the stock extending intraday fall.
ICICI Bank fell 2.41%, with the stock extending intraday fall.
UCO Bank slumped 6.46%, with the stock extending intraday fall. The stock extended post result slide as sticky loans rose in Q1 June 2013 over Q1 June 2012. The state-run bank during market hours today reported 41.01% rise in net profit to Rs 511.11 crore on 5.93% rise in total income to Rs 4668.81 crore in Q1 June 2013 over Q1 June 2012.
The bank's ratio of net non-performing assets (NPAs) to net advances increased to 3.15% as on 30 June 2013, from 2.23% as on 30 June 2012, but decreased from 3.17% as on 31 March 2013. The ratio of gross NPAs to gross advances increased to 5.58% as on 30 June 2013, from 3.88% as on 30 June 2012 and 5.42% as on 31 March 2013.
UCO Bank's capital adequacy ratio (CAR) as Basel II norms stood at 13.72% as on 30 June 2013, as against 12.33% as on 30 June 2012 and 14.15% as on 31 March 2013. CAR as per Basel III norms stood at 13.44% as on 30 June 2013.
The bank's provisions and contingencies jumped 81.3% to Rs 741.30 crore in Q1 June 2013 over Q1 June 2012.
IT major TCS jumped 5.41% to Rs 1,750 after striking a record high of Rs 1,753.90 in intraday trade today, 19 July 2013. The company reported good Q1 results after trading hours on Thursday, 18 July 2013. TCS' net profit rose 5.9% to Rs 3831 crore on 9.5% growth in revenue to Rs 17987 crore in Q1 June 2013 over Q4 March 2013. Operating profit rose 12% to Rs 4847 crore in Q1 June 2013 over Q4 March 2013.
TCS said growth in Q1 June 2013 was seen across all industry segments, led by life sciences, retail, telecom and BFSI. There was balanced growth across IT and other service lines led by Assurance, EiS, Global Consulting and Asset Leveraged Solutions. Major markets grew smartly led by USA, Europe and UK alongside growth in emerging markets like Latin America and Asia Pacific, TCS said in a statement. The company added two new $100 million clients in Q1 June 2013.
During the quarter, TCS closed the acquisition of Alti, one of the top 5 system integrators of SAP solutions in France with several top French corporations in the banking, financial services, luxury, manufacturing and utilities sectors as its key customers.
TCS said it continued to hire employees to support business growth. There was a total gross addition of 10,611 people and net addition of 1,390 people in Q1 June 2013, taking the total employee strength to 277,586 on a consolidated basis. The utilization rate (excluding trainees) was at 82.7% and that including trainees was 72.5%. The attrition rate (LTM) dropped further sequentially to 10.52% including BPO. The attrition rate in IT was at 9.55%, while BPO attrition was higher at 15.77%.
Commenting on the Q1 performance, TCS Chief Executive Officer and Managing Director N Chandrasekaran said: "We have delivered another solid quarter, driven by the highest volume growth in the past seven quarters. It has been an all-round performance with strong revenue growth across markets led by the US. Our investments in Europe continue to gain strong traction with customers and helped us deliver industry-leading growth this quarter. Strong momentum in our business, the right cost structure, a customer-centric approach and our increasing investments in new digital solutions and services positions us well to post another year of strong business growth".
TCS Chief Financial Officer Rajesh Gopinathan said: "The current environment demands an agile operating model that can capture diverse growth opportunities. We continue to execute to plan and invest for growth, while maintaining stability in our margin profile".
Mindtree surged 3.43% to Rs 945.80 after striking a 52-week high of Rs 966.20 in intraday trade today, 19 July 2013. The company's consolidated net profit surged 71.6% to Rs 135.40 crore on 5.8% growth in revenue to Rs 647.70 crore in Q1 June 2013 over Q4 March 2013. The Q1 result was announced after market hours on Thursday, 18 July 2013.
In dollar terms, Mindtree's consolidated net profit jumped 69% to Rs $24.6 million on 4.1% growth in revenue to $117.7 million in Q1 June 2013 over Q4 March 2013.
Mindtree added 1,057 employees in Q1 June 2013 on a gross basis. The company's active customers as of 30 June 2013 stood at 222.
Commenting on the first quarter results, Mindtree's CEO & MD, Krishnakumar Natarajan said: "We have delivered 15 consecutive quarters of revenue growth. This quarter's performance continues that trend and has been encouraging both from a revenue and profitability perspective. We hope to continue this momentum. We have made some key changes to our strategy and structure to enhance our expertise led positioning and to build an agile organization. We are confident that these steps are in the right direction to achieve our aspirations to deliver industry leading growth".
Hanung Toys and Textiles jumped 4.86% after the company said it bagged an export order from a leading US-based buyer for exporting value-added home furnishing to the extent of $60 million (approximately Rs 360 crore) to be completed within three years. The announcement was made after market hours on Thursday, 18 July 2013.
Prime Minister Dr. Manmohan Singh today, 19 July 2013, that the economy may grow slower than previously expected 6.5% for the year to March 2014. India is committed to bringing its current account deficit under control and reducing demand for gold and petroleum products, he said.
Asian markets declined as fund managers shift money from Asia to the US amid concerns that growth is slowing in China and Japan's economic reforms may be losing steam. Key benchmark indices in South Korea, Singapore, Taiwan, China and Hong Kong fell 0.13% to 1.62%. Indonesia's Jakarta Composite rose 0.25%.
Japanese shares beat a sharp retreat after opening comfortably higher, with a wave of selling ahead of weekend elections in the country. The Nikkei 225 Average was off 1.48%. The volatility in Tokyo came ahead of the country's upper house elections this weekend, in which the ruling Liberal Democratic Party (LDP) is expected to easily clinch a majority. The LDP already has a majority in the lower house of the parliament, and a majority in the upper chamber of the Diet is widely expected to strengthen Prime Minister Shinzo Abe's government in its attempt to revive the Japanese economy.
Trading in US index futures indicated that the Dow could fall 29 points at the opening bell on Friday, 19 July 2013. US stocks rose on Thursday, 18 July 2013, after the second day of congressional testimony from Federal Reserve Chairman Bernanke and some upbeat earnings results, including from Morgan Stanley. The Dow Jones Industrial Average and S&P 500 reached record closing highs, with sentiment also boosted by Moody's Investors Service lifting its outlook on US credit ratings to stable and reaffirming the country's AAA sovereign rating.
Federal Reserve Chairman Ben Bernanke spent a second day on Capitol Hill on Thursday, discussing the outlook and Fed rate policy with the Senate Banking Committee. Bernanke said yesterday it was "way too early to make any judgment" about starting tapering in September. Tighter financial conditions as a result of rising yields over the past two months are "unwelcome," Bernanke said in response to a question from the Senate Banking Committee following his testimony yesterday. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.
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